Strategic Human Resource Management: A Guide to Action

196 Pages·2006·1.64 MB·english

by  Armstrong M.

i
STRATEGIC
HUMAN RESOURCE
MANAGEMENT
ii
iii
STRATEGIC
HUMAN RESOURCE
MANAGEMENT
A GUIDE TO ACTION
3RD EDITION
Michael Armstrong
London and Philadelphia
iv
Publisher’s note
Every possible effort has been made to ensure that the information contained in this book is
accurate at the time of going to press, and the publishers and authors cannot accept responsi-
bility for any errors or omissions, however caused. No responsibility for loss or damage occa-
sioned to any person acting, or refraining from action, as a result of the material in this
publication can be accepted by the editor, the publisher or the author.
First published in Great Britain in 1992 as Human Resource Management: Strategy and Action
Second edition published as Strategic Human Resource Management: AGuide to Action2000
Third edition 2006
Apart from any fair dealing for the purposes of research or private study, or criticism or
review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may
only be reproduced, stored or transmitted, in any form or by any means, with the prior
permission in writing of the publishers, or in the case of reprographic reproduction in accor-
dance with the terms and licences issued by the CLA. Enquiries concerning reproduction
outside these terms should be sent to the publishers at the undermentioned addresses:
120 Pentonville Road 525 South 4th Street, #241
London N1 9JN Philadelphia PA19147
United Kingdom USA
www.kogan-page.co.uk
© Michael Armstrong, 1992, 2000, 2006
The right of Michael Armstrong to be identified as the author of this work has been asserted
by him in accordance with the Copyright, Designs and Patents Act 1988.
ISBN 0 7494 4511 4
British Library Cataloguing-in-Publication Data
ACIPrecord for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Armstrong, Michael, 1928–
Strategic human resource management : a guide to action / Michael
Armstrong.-- 3rd ed.
p. cm.
Includes bibliographical references and index.
ISBN 0-7494-4511-4
1. Personnel management. I. Title.
HF5549.A89784 2005
658.3(cid:2)01--dc22
2005024402
Typeset by Saxon Graphics Ltd, Derby
Printed and bound in the United States by Thomson-Shore, Inc.
v
Contents
Preface ix
PART 1 THE FRAMEWORK OF STRATEGIC HUMAN RESOURCE
MANAGEMENT
1 Human resource management 3
Human resource management defined 3; Models of HRM 4;
Aims of HRM 6; Characteristics of HRM 8; Reservations about
HRM 13; HRM and personnel management 16
2 Strategy: concept and process 19
Strategy defined 19; The concept of strategy 20; The
fundamentals of strategy 22; The formulation of strategy 24
3 Strategic human resource management: concept and process 29
Strategic HRM defined 29; The meaning of strategic HRM 30;
Aims of strategic HRM 30; Approaches to strategic HRM 31;
Limitations to the concept of strategic HRM 35; Conclusion 35
4 HR strategies 37
HR strategies defined 37; Types of HR strategies 38; Criteria for
an effective HR strategy 42
vi l Contents
PART 2 STRATEGIC HUMAN RESOURCE MANAGEMENT IN
ACTION
5 Formulating and implementing HR strategies 47
Fundamental process considerations 48; Characteristics of the
process 49; Developing HR strategies 52; Setting out the
strategy 64; Conducting a strategic review 65; Implementing HR
strategies 69
6 Improving business performance through strategic HRM 71
How HR impacts on organizational performance 72; How HRM
strategies make an impact 75; How strategic HRM concepts
impact on practice 77
7 Roles in strategic HRM 79
The strategic role of top management 79; The strategic role of
front-line management 79; The strategic role of the HR director 81;
The strategic role of HR specialists 81
PART 3 HR STRATEGIES
8 Strategies for improving organizational effectiveness 89
Strategies for improving organizational effectiveness 90;
Strategies for organizational development 91; Strategies for
organizational transformation 95; Strategies for culture
management 99; Strategies for knowledge management 106;
Commitment strategy 110; Strategies for developing a climate
of trust 112; Quality management strategies 114; Continuous
improvement strategies 115; Customer service strategy 115
9 Resourcing strategy 117
Resourcing strategy defined 117; The objective of resourcing
strategy 117; The strategic HRM approach to resourcing 118;
Integrating business and resourcing strategies 118; Bundling
resourcing strategies and activities 119; The components of
employee resourcing strategy 120; Human resource
planning 120; Resourcing plans 123; Retention strategy 126;
Flexibility strategy 130; Talent management strategy 130
10 Learning and development strategy 133
Strategic HRD 133; Strategies for creating a learning
culture 136; Organizational learning strategies 137;
Contents l vii
Learning organization strategy 138; Individual learning
strategies 139
11 Strategies for managing performance 141
Performance management 142; Performance management
defined 142; Purpose of performance management 143;
Performance management concerns 143; The scope of
performance management strategy 144; The process of
performance management 145; Conclusion 147
12 Reward strategy 149
Reward strategy defined 149; Why have a reward strategy? 149;
Characteristics of reward strategy 150; The structure of reward
strategy 150; The content of reward strategy 151; Guiding
principles 154; Developing reward strategy 155; Effective
reward strategies 157; Reward strategy and line management
capability 158
13 Employee relations strategy 159
Employee relations strategy defined 159; Concerns of employee
relations strategy 160; Strategic directions 160; The background
to employee relations strategies 161; The HRM approach to
employee relations 161; Policy options 163; Formulating
employee relations strategies 163; Partnership agreements 164;
Employee voice strategies 166
References 169
Further reading 179
Author index 185
Subject index 189
viii
ix
Preface
This third edition of Strategic Human Resource Managementhas been substan-
tially revised to incorporate the latest research and thinking. Anumber of
chapters such as those concerned with strategic HRM in general in Parts 1
and 2 have been almost completely rewritten, as has Chapter 12 on reward
strategies. A new chapter on enhancing organizational effectiveness has
been included and revisions made to all the other chapters.
The book is set out under the following headings:
•
Part 1: The framework of strategic human resource management. This
provides an introduction to HRM, the general concept of strategy and
the process of strategic HRM.
•
Part 2: Strategic human resource management in action. This describes the
formulation and implementation of HRM strategies, the impact of
strategic human resource management, the strategic contribution of the
HR function, and roles in strategic HRM.
•
Part 3: HR strategies. This covers each of the main areas in which HR
strategies are developed, namely: enhancing organizational effectiveness,
resourcing, learning and development, managing performance, reward
and employee relations.